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Car Leasing
daveb666 - 9/12/13 at 11:17 AM

Looking to get a new car for the wife.

I've had 3 Golfs over the last 6 years (currently have a MK7 Golf) - none have ever gone wrong or cost me a penny over and above servicing/tyres and I do over 25k a year so I'm looking at getting one on PCP/Lease for the missus.

She is a sole-trader so will be doing this through her company as oppose to a personal basis. The car I'm looking at is a VW Golf Mk7 1.6 tdi SE on a 3 year 3 + 35 basis and she intends to hand the car back at the end of the lease.

I'm currently moseying round the usual websites and will speak to VW directly later in the week, but I'm just curious as to whether anyone has any lease horror stories that I need to be aware of, or alternatively know any good companies that will be able to cut me a good deal?

I'm ideally not looking to spend anymore than £210 inc VAT a month. Servicing/tyres won't be needed.

Thanks

Charlie_Zetec - 9/12/13 at 11:48 AM

I was advised against getting a company or business lease car when I started my own company two years ago, from my accountant. He suggested I was better off purchasing a car directly, and paying myself the mileage. Admittedly I don't do moon miles for business, but I'd ask someone in the know abut the tax implications against estimated mileage etc. before making a firm decision.

Edited to add;
Check the HMRC website for mileage allowances, but I believe they suggest 45p/mile for first 10k miles and a reduced rate thereafter. You might be able to pay yourself more than this, as it could be used as a "guideline". But as per my initial post, I'd seek further financial guidance!

[Edited on 9/12/13 by Charlie_Zetec]

daveb666 - 9/12/13 at 11:56 AM

Her annual mileage is usually sub 6k so I don't think that will work out the best? I'm trying to get the best option that has the best/newest car for the least outlay from us.

Slimy38 - 9/12/13 at 12:57 PM

The only thing I was going to add was that if you go over your allowed mileage you really get screwed. Make sure that you get a mileage that is definitely going to cover you, otherwise the hand back at the end of the lease will be a bit of a shock.

You really need to look into the tax implications if it's coming through the company though. I was invited to take a company car which seemed a nice 'perk' on the face of it, but the amount of tax put me in the region of being able to buy the car outright, rather than it being something I would never own.

rick1962uk - 9/12/13 at 01:05 PM

Watch out they will screw you at the end or term it has to have a full service history and be returned back in same condition as you had it we have just been charged 3k for this and cant do a thing so read the small print

daveb666 - 9/12/13 at 01:12 PM

quote:
Originally posted by Slimy38
The only thing I was going to add was that if you go over your allowed mileage you really get screwed. Make sure that you get a mileage that is definitely going to cover you, otherwise the hand back at the end of the lease will be a bit of a shock.

You really need to look into the tax implications if it's coming through the company though. I was invited to take a company car which seemed a nice 'perk' on the face of it, but the amount of tax put me in the region of being able to buy the car outright, rather than it being something I would never own.


Current car has done 22k over 4 years and her role has changed so she won't come close to that mileage from now on. My wife is a sole-trader so it's not a 'company car' in the way that yours is.

quote:
Originally posted by rick1962uk
Watch out they will screw you at the end or term it has to have a full service history and be returned back in same condition as you had it we have just been charged 3k for this and cant do a thing so read the small print


The website I'm currently looking at expects the car to be in "reasonable condition aside from fair wear and tear" - and my missus does usually keep her cars in respectable shape. At 18k over three years the Golf would only just be requiring a service (around 15-18,000miles) and if it does a first service at VW is £175 so not the end of the world.


Thanks for your comments so far,

ste - 9/12/13 at 02:36 PM

Does it have to be a golf? A Seat Leon is essentially the same car and is loads cheaper

I know a few people who lease through gateway2lease.com and have no complaints and they are very cheap

http://www.gateway2lease.com/z_seat_leon_1.6tdise5dr_14922_leasing.php#.UqXUeuL6SFI


They also do used car leases, a 1 year old merc c class for the same money as your golf

http://www.gateway2lease.com/z_mercedes_c-classsaloon_c180executiveseautomatic-used.62plated_15081_leasing.php#.UqXVFuL6SFI

daveb666 - 9/12/13 at 03:11 PM

Doesn't need to be a Golf, but as I have one, she wants one; go figure. Chap at work has a new Leon and I know it's effectively the same car as a Golf, but the feel and quality of the interior is not in the same league as my car.

It does need to be a 5dr hatchback though as I need room for the dog in the boot.

Didn't realise you can get used car leases though, something worth looking at thank you.

sdh2903 - 9/12/13 at 04:19 PM

Why a diesel for only 6k a year? is it for the tax purposes? otherwise it doesn't make sense.

The 1.2 turbo bluemotion is 2k cheaper similar performance and still gives 55-60 to the gallon?

Diesel is 10p per litre dearer too. So 20k at 70mpg = £1787
Petrol, 20k at 55mpg = £2109

So the diesel will cost 1700 more over the 20k miles!

I'm not really normally this sad but ive just had this discussion with my old man

daveb666 - 9/12/13 at 04:27 PM

1.2 turbo Golf? The bluemotion Golf is a 1.6 tdi? Are you looking at the Polo; they're too small unfortunately and for some reason the petrol equivalent (1.4 tsi) of the Golf works out at a tenner a month more than the Golf; and in my opinion the diesel is a nicer drive.

[Edited on 9/12/13 by daveb666]

sdh2903 - 9/12/13 at 04:37 PM

They do 2 versions of the 1.2 turbo in the golf, 88bhp and 105bhp, its called the 1.2 tsi bluemotion tech.

Just looking at it though its only avail in the S spec.

sdh2903 - 9/12/13 at 04:40 PM

have a look at audi a3 too, a mate at work just got a cracking deal on a lease A3 tdi. The price gulf to the golf isn't as big as what it once was.

daveb666 - 9/12/13 at 04:41 PM

Ah rite I see.

Just looked on the vw website

1.2 turbo Golf S Bluemotion - £598 then £199.35 a month + VAT

1.6 tdi Golf SE - £580 then £193.51 a month + VAT

I assume the re-sale value on the tdi will be higher, hence the lower monthly charge? Obviously it would still work out cheaper having the petrol, however I've seen how my missus drives and it's unlikely she'd ever achieve 70mpg so the diesel is probably a more suitable choice for her driving style LOL.

chrism - 9/12/13 at 06:59 PM

I would do what others have said and buy the car personally as opposed to throught the business, that way you(her) can pay yourself a mileage allowance at below the government guidelines and then you get tax relief on the difference.

i.e.

allowance is 45p per mile x 6000 miles = £2700
pay yourself 15p per mile x 6000 miles = £900

The difference is £1800 so you could earn £1800 more in the year before paying tax. (Not sure about NI thought)

At least thats the way it used to be, I think you can also claim back a couple of pence of VAT for each mile, depending on your business etc.

Also I dont know about what sort of benefit in Kind tax you would have to pay if any due to being her own business.

As for horror stories I think others have said to watch your miles, if its set to about what you will use there is usually a hefty charge per mile over what the agreement says.

[Edited on 9/12/13 by chrism]